What happened
Shares of Fastly (FSLY +5.48%) skyrocketed 335% last year, according to data provided by S&P Global Market Intelligence, as demand for the company's content delivery network (CDN) service spiked during pandemic-induced lockdowns and social distancing.
So what
Fastly, like many other tech stocks, experienced astronomical share price growth as demand for its services spiked during the pandemic. Fastly's CDN helps speed up the delivery of online content, including video, to users.
Image source: Getty Images.
The rise in CDN demand caused Fastly's revenue to soar in 2020. In the first quarter, reported on May 6, 2020 Fastly's sales jumped 38% from the year-ago quarter.
Subsequent quarters were even more impressive, with sales increasing 62% in the second quarter and 42% in the third quarter.
As investors continued to digest the news of rising COVID-19 cases and lockdowns, Fastly's shares climbed throughout the year, with a huge 97% spike in June and a 33% jump in November.
Additionally, the company continued to add new customers throughout the year. By the end of the third quarter Fastly had 2,047 customers, up 17% from the beginning of 2020. The company's fourth-quarter results won't be released until mid-February.
Now what
The company estimates that full-year 2020 revenue will be $292 million at the high end of management's guidance. If it reaches that figure, it'll represent a 46% increase from Fastly's 2019 sales.
Investors will likely continue to keep a close eye on Fastly's growth in 2021. With the U.S. continuing to experience a surge in COVID-19 cases and the initial vaccine rollout taking longer than estimated, Americans could continue to spend increased time at home well into the new year.
